In many cases, you may be surprised to find that divorcing couples can come to agreements in terms of their property. However, until a judge signs an order, your community property and debts still belong to you and you will have to arrive at the best conclusion on what steps to take. In California, a couple will use the Schedule of Assets and Debts (Form FL-142) to declare all assets and debts to make the process easier. You will compare these documents to see if you disagree about something being a community or separate asset or if there is a big difference in how you value the community property.
One thing to remember is that the “dividing in half” method doesn’t always bring the best results. This is when a spouse attempts to take the entire amount of assets and divide it in half. Sometimes they will even go as far as to write this out in an agreement. However, this could mean that you are also giving half the credit cards to one party and they may bring you in a state of debt. To avoid doing this, many couples will choose to pay the credit cards using the money they get from the sale of property.
What About Things Like Pensions and Employment Benefits?
Some spouses will accumulate interest either in a pension, retirement, profit sharing, or other form of benefit. The part that was accumulated during marriage will become community property and will be subject to division. These benefits will sometimes be divided through “reservation of jurisdiction” or “cash outs.” In both situations, the spouse will usually owe some of that money to the other through divorce. The best way to figure out what is best for your situation is by speaking to an attorney about your case. Call us today for more information on how we can help!
